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HELICOPTER AIR SERVICE PROGRAM 407

Table III-14
TOTAL OPERATING EXPENSES PER AVAILABLE TON MILE 
(All services)

[[5 column table]]
|Year|Total|CHA|LAA|NYA|
|---|---|---|---|---|
|1953|$6.746|$6.764|$5.087|$8.555|
|1954|6.766|6.913|4.779|8.753|
|1955|6.762|6.779|4.384|10.000|
|1956|6.380|7.814|3.950|9.090|
|1957|4.817|3.885|3.916|6.339|
|1958|3.980|2.673|3.872|6.156|
|1959|4.042|2.911|3.796|5.985|
|1960|3.762|2.659|4.272|5.760|
|1961|4.034|2.717|4.227|6.438|
|1962|3.793|3.194|2.817|5.223|
|1963*|2.996|3.645|2.060|3.923|

*12 months ended September 20.

Source: Handbook of Airline Statistics; Form 41, CAB.
It will be noted that industry costs per available ton mile remained pretty much on a plateau from 1958 through 1962. Although unit costs dropped in 1962 for LAA and NYA in their first year with turbine equipment, their operations with new equipment were limited and such improvements as were made were offset by unit-cost increases for CHA, resulting from their cutback in operations.

The influence of the larger equipment on costs can be seen in the current 1963 experience of LAA and NYA. For the 12 months ended September 30, 1960 operating costs per available ton mile dropped to $2,060 from 1962 experience in the case of LAA and from $5.223 to $3.923 in the case of NYA. 

In analyzing the reductions in unit operating expenses which have been brought by the inauguration of the new turbine equipment, it is necessary to consider trends in the relationship between direct and indirect operating expenses. Direct expenses are those involved in Flying Operations, Direct Maintenance and Flight Equipment Depreciation. 

In lookin at the relationship between direct and indirect expenses it is easy to see the effect that the inauguration of new equipment has had on both categories of total operating expense. At the same time, it is easy to see, in the recent experience of CHA, the influence of a decreased scale of operation on airline operating expenses. Although the decreased scale of operations has had little effect on direct operating costs per available ton mile, it has had a considerable impact on indirect operating expenses. CHA unit indirect expenses are now twice that of the 1958-1961 period when the inter-airport operation of CHA was not at the present abnormally low level. The present holding operation of CHA has tended to obscure, on an industry level, the influence of the new equipment on indirect costs. In the case of LAA and NYA, direct and indirect expenses both have declined on a unit basis under turbine operations. 

III-16